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SECRET
RIMENT IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T COPY NO
j6th lions
CABINET CONCLUSIONS
o f a M e e t i n g of the
Cabinet
h e l d a t 10 D o w n i n g S t r e e t o n THURSDAY
14 J U N E
1979
a t 1 0 . 30 a m
PRESENT The Rt Hon Margaret Thatcher Prime ion W i l l i a m W h i t e l a w
The Rt Hon L o r d Hail sham
MP
ry of State f o r t h e H o m e
MP
Minister
Department
Lord
Chancellor
The Rt Hon Sir Keith Joseph
ion L o r d C a r r i n g t o n
S e c r e t a r y of State for
l y o f State f o r F o r e i g n a n d
MP
Industry
wealth A f f a i r s
Ion F r a n c i s P y m 7 of State f o r
MP
1
of A g r i c u l t u r e ,
y of State f o r
T h e R t H o n S i r Ian G i l m o u r
MP
MP
S e c r e t a r y of S t a t e f o r
MP
^ y o f State f o r N o r t h e r n
Ion D a v i d H o w e l l y of State f o r ton John B i f f e n jcretary,
MP
Lancaster MP
MP
MP
S e c r e t a r y of State f o r S o c i a l S e r v i c e s T h e Rt H o n John Nott
MP
S e c r e t a r y of State for
Trade
The Rt Hon M a r k Carlisle Q C
Energy
Wales
The Rt Hon Patrick Jenkin
Ireland
Ion N o r m a n St J o h n - S t e v a s or of the D u c h y o f
MP
S e c r e t a r y of State f o r the E n v i r o n m e n t
The Rt Hon Nicholas Edwards
Scotland
Blon Humphrey A t k i n s
MP
The Rt Hon Michael Heseltine
F i s h e r i e s and F o o d
Ion G e o r g e Y o u n g e r
Council
L o r d P r i v y Seal
Employment
Ion P e t e r W a l k e r
Soames
L o r d P r e s i d e n t o f the
Defence
Ion J a m e s P r i o r y of State f o r
The Rt Hon L o r d
MP
MP
S e c r e t a r y of State f o r E d u c a t i o n a n d S c i e n c e
MP
The Rt Hon Angus
Treasury
Paymaster
SECRET
Maude
General
MP
62
SECRET
THE
FOLLOWING
on S i r M i c h a e l H a v e r s
WERE ALSO
QC M P
PRESENT
The Rt Hon Norman
General (Items 5-8)
M i n i s t e r of
The Rt Hon Michael Jopling Parliamentary
Secretary,
Fowler
M P
Transport
M P Treasury
SECRETARIAT Sir John Hunt Sir Clive Rose
( I t e m s 2 a n d 3)
Mr
M D M F r a n k l i n (Items
Mr
P L e C h e m i n a n t ( I t e m s 7 a n d 8)
Mr
P J H a r r o p ( I t e m s 1,
Mr
P M o u n t f i e l d ( I t e m 7)
2-4)
5 a n d 6)
M r D E R F a u l k n e r ( I t e m s 1,
5 a n d 6)
M r D M E l l i o t t ( I t e m 4) P J Fowler
Mr
(Item
8)
C O N T E N T S Subject PARLIAMENTARY FOREIGN
Page
AFFAIRS
1
AFFAIRS
Rhode sia
1
Vietnamese
Refugees
1
Namibia COMMUNITY
2 AFFAIRS
2
CAP PRICES A N D G R E E N POUND HOUSE O F C O M M O N S
DEVALUATION
PROCEDURE
3 6
L E G I S L A T I V E P R O G R A M M E 1979-80
8
CASH LIMITS
9
THE BINGHAM
REPORT
A F u r t h e r Inquiry
11
ii
SECRET
63
CONFIDENTIAL
MENTARY
1.
T h e C a b i n e t w e r e i n f o r m e d o f the b u s i n e s s to b e t a k e n i n t h e
H o u s e o f C o m m o n s d u r i n g the f o l l o w i n g
2.
THE FOREIGN AND
week.
COMMONWEALTH SECRETARY
s a i d that
o n the p r e v i o u s d a y the U n i t e d S t a t e s S e n a t e h a d a d d e d a n a m e n d m e n t
to
the M i l i t a r y A u t h o r i s a t i o n B i l l c a l l i n g f o r a n i m m e d i a t e e n d t o
sia as ence: 14th lisions,
sanctions.
T h e B i l l n o w h a d to go t h r o u g h the H o u s e o f
tatives where a vote was
Represen
l i k e l y to b e t a k e n w i t h i n t h e n e x t t w o
If the H o u s e o f R e p r e s e n t a t i v e s s t i l l be o p e n t o P r e s i d e n t
weeks.
s u p p o r t e d the S e n a t e ' s v i e w it w o u l d
C a r t e r t o v e t o the B i l l .
In t h i s c a s e a
two
t h i r d s m a j o r i t y o f b o t h H o u s e s w o u l d b e r e q u i r e d to o v e r t u r n h i s v e t o . It w a s t o o e a r l y t o s a y w h e t h e r
this was
l i k e l y to be
obtainable.
1
THE FOREIGN AND
ees
COMMONWEALTH SECRETARY
r e f u s a l of the M a l a y s i a n s a n d I n d o n e s i a n s
s a i d that the
to take a n y m o r e
refugees
f r o m V i e t n a m w o u l d have the r e s u l t of i n c r e a s i n g the p r e s s u r e
ous
Kong.
The Governor,
w h o m he h a d s e e n the p r e v i o u s d a y ,
nice:
about the s i t u a t i o n a n d w o u l d be
lisions,
the b o r d e r
on Hong
was
worried
s e e i n g the P r i m e M i n i s t e r that e v e n i n g .
T h e T h a i G o v e r n m e n t h a d b e g u n f o r c i b l y to e x p e l r e f u g e e s b a c k 7
arrival.
T h e r e was
s t i l l doubt about whether
the r e f u g e e s o n b o a r d o f R o a c h b a n k :
t h e Taiwanese w o u l d
c o n t r a r y to e a r l i e r
m o r e t h a n h a l f o f t h e m w e r e c h i l d r e n o f 15 a n d u n d e r . the o t h e r B r i t i s h s h i p c u r r e n t l y c a r r y i n g r e f u g e e s , and was
o n t h e w a y to O s a k a .
If t h e J a p a n e s e
reports
Norse Viking,
had left H o n g K o n g
The response
P r i m e M i n i s t e r ' s p r o p o s a l for an international conference, S e c r e t a r y G e n e r a l of the U n i t e d N a t i o n s , had been favourable,
Dr Waldheim,
b u t the i n i t i a l e n t h u s i a s m w a s
had
welcomed,
now waning.
M r Hartling,
b e e n g i v e n the t a s k o f o r g a n i s i n g t h e c o n f e r e n c e ,
was
of a s s u r a n c e s
accept refugees. Mr
persuade
was
The who
had
r e l u c t a n t to d o
t h a t t h o s e a t t e n d i n g w o u l d be w i l l i n g t o
T h e M i n i s t e r of State,
Blaker,
to the
w h i c h the
United Nations High C o m m i s s i o n e r for Refugees, i n the a b s e n c e
accept no
r e f u s e d to a c c e p t the
r e f u g e e s o n b o a r d w e w o u l d be a s k e d to d o s o .
Office,
across
and those who w e r e r e t u r n e d i n this w a y w e r e b e i n g shot on
F o r e i g n and
Commonwealth
g o i n g to G e n e v a to see M r H a r t l i n g to t r y a n d
h i m to do s o m e t h i n g ,
and we w o u l d f o l l o w t h i s up w i t h a
f u r t h e r m e s s a g e to D r W a l d h e i m .
T h e United States A d m i n i s t r a t i o n
w e r e getting c o n c e r n e d about the p r o b l e m a n d P r e s i d e n t C a r t e r
was
i n t e n d i n g to r a i s e it w i t h P r e s i d e n t B r e z h n e v of the S o v i e t U n i o n i n Vienna.
CONFIDENTIAL
so
CONFIDENTIAL
THE FOREIGN AND
C O M M O N W E A L T H S E C R E T A R Y s a i d t h a t we
h a v i n g g r e a t d i f f i c u l t y i n r e s t a r t i n g the i n i t i a t i v e of the F i v e . Security
C o u n c i l was
and it was
dn.* t o m e e t t o d i s c u s s N a m i b i a t h e f o l l o w i n g
l i k e l y that the p r o p o s a l f o r
would be r e v i v e d . being.
We
s h o u l d be a b l e to h o l d t h i s
s i t u a t i o n f o r the t i m e Mr
Vance,
h e a v i l y e n g a g e d o n the V i e n n a S u m m i t we w e r e n o t g e t t i n g a s s u p p o r t f r o m the A m e r i c a n s
day
sanctions against South A f r i c a
B u t with the U n i t e d States S e c r e t a r y of State,
The Cabinet
were
The
a s we w o u l d h a v e
much
wished.
-
T o o k note. 3.
T H E FOREIGN AND
other m e m b e r
C O M M O N W E A L T H S E C R E T A R Y said that
s t a t e s n o w w i s h e d to i n c r e a s e the C o m m u n i t y ' s a i d
i n the n e g o t i a t i o n s f o r
a new L o m e
Convention.
r e s i s t t h i s i n v i e w of the G o v e r n m e n t ' s expenditure.
The increase
offer
w e r e c o n t i n u i n g to
g e n e r a l p o s i t i o n on public
proposed might involve an additional
United K i n g d o m c o n t r i b u t i o n of five
We
£12 m i l l i o n p e r a n n u m o v e r t h e
next
year6.
THE LORD PRIVY
S E A L s a i d that at the C o u n c i l of M i n i s t e r s
A f f a i r s ) o n 12 J u n e t h e r e h a d b e e n
(Foreign
s o m e d i f f i c u l t y i n e n s u r i n g that the
i t e m u n d e r w h i c h o u r b u d g e t p r o b l e m w o u l d be d i s c u s s e d w a s
adequately
i n c l u d e d i n the a g e n d a f o r the f o r t h c o m i n g E u r o p e a n C o u n c i l i n Strasbourg.
T h i s c o u l d b e i n d i c a t i v e of t h e e n t r e n c h e d p o s i t i o n o f
other m e m b e r the H e a d s was THE
s t a t e s e s p e c i a l l y the F r e n c h .
It w o u l d h o w e v e r b e
o f G o v e r n m e n t t o d e t e r m i n e t h e o r d e r i n w h i c h the
for
agenda
taken. SECRETARY OF STATE FOR ENERGY
s a i d that he w o u l d
be
a t t e n d i n g a m e e t i n g o f the C o u n c i l of M i n i s t e r s ( E n e r g y ) o n 18 J u n e t o prepare
t h e g r o u n d f o r the d i s c u s s i o n o n e n e r g y
Council.
We
at the
European
d i d n o t w a n t t o go d o w n t h e r o a d o f o i l a l l o c a t i o n s .
The Cabinet
-
T o o k note.
2 CONFIDENTIAL
CONFIDENTIAL
4.
T h e C a b i n e t h a d b e f o r e t h e m a m e m o r a n d u m b y the M i n i s t e r o f
Agriculture, IEN BATION
)2nd
Hons, i3
p r i c e s and on
t h e G r e e n P o u n d i n t h e 18 J u n e m e e t i n g o f t h e C o u n c i l o f M i n i s t e r s (Agriculture). THE
rious lence:
F i s h e r i e s a n d F o o d ( C ( 7 9 ) 20) s e t t i n g out the linw he
p r o p o s e d to take o n C o m m o n A g r i c u l t u r a l P o l i c y ( C A P )
MINISTER
his proposals,
OF AGRICULTURE,
F I S H E R I E S A N D F O O D s a i d that
w h i c h h a d been c o n s i d e r e d b y the M i n i s t e r i a l S u b -
C o m m i t t e e o n E u r o p e a n Q u e s t i o n s o n 11 J u n e , f e l l i n t o t w o p a r t s . C A P prices,
On
he p r o p o s e d to s u p p o r t the C o m m i s s i o n ^ p r o p o s a l s f o r
general price freeze,
a
to a c c e p t t o k e n i n c r e a s e s i f n e c e s s a r y o n m i n o r
i t e m s i f t h e y w e r e p r o p o s e d b y the C o m m i s s i o n d u r i n g the d i s c u s s i o n s , but to stand f i r m on c o m m o d i t i e s i n s e r i o u s
surplus -
pre-eminently
m i l k and s u g a r - and to r e j e c t a m i l k l e v y that d i s c r i m i n a t e d unacceptably against United K i n g d o m producers.
The F r e n c h were
l i k e l y to m a k e a d e t e r m i n e d p u s h f o r a g e n e r a l 2 p e r c e n t p r i c e i n o r d e r to l e a v e r o o m f o r a r e d u c t i o n i n G e r m a n Compensatory Amounts (MCAs),
and might make a l i n k between our
attitude o n C A P p r i c e s a n d t h e i r w i l l i n g n e s s to m a k e a m o v e E u r o p e a n C o u n c i l towards our budget objectives. unreliable Italian support for a p r i c e freeze,
at the J u n e
T h o u g h we
had
a n d the G e r m a n s
that t h e y w o u l d not t h e m s e l v e s p r e s s f o r a p r i c e i n c r e a s e , member
increase
Monetary
had
s t a t e s w e r e l i k e l y to go a l o n g w i t h the F r e n c h d e s i r e .
were therefore
There
t a c t i c a l r i s k s i n o u r s t a n c e o n the p r i c e f r e e z e ,
since it was i m p r o b a b l e
said
a l l the o t h e r but
that the n e g o t i a t i o n s w o u l d be c o n c l u d e d at n e x t
w e e k ' s A g r i c u l t u r e C o u n c i l we
s h o u l d n o t be the f i r s t to m a k e
any
concessions. In d i s c u s s i o n t h e r e w a s g e n e r a l M i n i s t e r of A g r i c u l t u r e , t h a t we
although it was
should not accept a p r i c e i n c r e a s e for beef because it
represent a back-door with third country THE
s u p p o r t for the l i n e p r o p o s e d b y the
F i s h e r i e s and F o o d ,
s t i m u l u s to m i l k p r o d u c t i o n a n d c a u s e
suggested would difficulties
suppliers.
PRIME MINISTER,
s u m m i n g u p t h i s p a r t o f the d i s c u s s i o n ,
said
that the C a b i n e t b r o a d l y e n d o r s e d the a p p r o a c h to the p r i c e - f i x i n g n e g o t i a t i o n s p r o p o s e d b y the M i n i s t e r o f A g r i c u l t u r e , Food.
Whilst i t was
a c c e p t e d that he m i g h t n e e d s o m e m e a s u r e
f l e x i b i l i t y i n the f i n a l s t a g e s of the n e g o t i a t i o n s , on a g e n e r a l f r e e z e
Fisheries
f o r the t i m e
we
should stand
1.
T o o k note,
with approval,
of the
Prime
M i n i s t e r ' s s u m m i n g up of this p a r t of t h e i r d i s c u s s i o n a n d i n v i t e d the M i n i s t e r of A g r i c u l t u r e , F i s h e r i e s a n d F o o d to be g u i d e d
CONFIDENTIAL
of firm
b e i n g at l e a s t a n d s h o u l d i n p a r t i c u l a r
not take any steps w h i c h w o u l d w e a k e n the C o m m i s s i o n ^ h a n d . The Cabinet
and
accordingly.
CONFIDENTIAL
THE
MINISTER
OF AGRICULTURE,
on the G r e e n P o u n d ,
FISHERIES AND
FOOD
h e p r o p o s e d a n e a r l y d e v a l u a t i o n o f l\
said that, per
p l u s a t a c t i c a l b i d f o r a n a d d i t i o n a l d e v a l u a t i o n of up to 5 p e r pigmeat only.
Farmers
had suffered
i n c o m e s i n 1978 a n d t h e y f a c e d
on confidence and i n v e s t m e n t .
cent this year,
T h e r e was
farm effects
a c r i s i s i n the p i g i n d u s t r y ,
M C A s on i m p o r t s a n u m b e r
plants had already
T h e G o v e r n m e n t was
of p r o c e s s i n g
c o m m i t t e d to p u t t i n g
o n l e v e l c o m p e t i t i v e t e r m s w i t h the r e s t of the
C o m m u n i t y d u r i n g the p r e s e n t P a r l i a m e n t . n e c e s s a r y to r e s t o r e
British agriculture,
which was
A d e v a l u a t i o n of the
order
c o n f i d e n c e a n d p r o f i t a b i l i t y to
w e l l p l a c e d b e c a u s e of i t s e f f i c i e n c y
improve its export performance payments.
cent
with d i s a s t r o u s
where b e c a u s e of e x c e s s i v e closed.
year;
25 p e r
Without a further G r e e n Pound devaluation
British farmers
real
s t e e p l y r i s i n g c o s t s i n the c u r r e n t
i n c o m e s w o u l d f a l l b y s o m e 15 p e r
proposed was
cent for
a 13 p e r c e n t d r o p i n t h e i r
bank b o r r o w i n g s w e r e n o w o f the o r d e r of £ 2 , 000 m i l l i o n , up on l a s t y e a r .
cent
and thus y i e l d benefits
B o t h the C o m m i s s i o n and o u r p a r t n e r s
a s s u m e d that
and there was
member
states
now g e n e r a l
week's
a c c e p t a n c e i n the C o m m u n i t y that
s h o u l d be f r e e to m a k e
changes in their
green
c u r r e n c i e s p r o v i d e d that t h e y w e r e m o v i n g i n the d i r e c t i o n of the price
common
level.
In d i s c u s s i o n t h e r e w a s the G r e e n P o u n d .
support for a f u r t h e r i m m e d i a t e devaluation of
F a r m i n c o m e s had been
and the N o r t h of E n g l a n d .
It w a s
A move
production
of t h i s k i n d w o u l d
a m o n g the r u r a l c o m m u n i t y w h i c h w o u l d
G o v e r n m e n t i n g o o d s t e a d i n the f u t u r e . per
would
it was
o n top of the e f f e c t s
o f the 5 p e r
n e g o t i a t e d by the l a s t G o v e r n m e n t i n M a r c h , milk price announced i n M a y , increases
f r o m 8 p e r c e n t to 17^ p e r price increases,
o f the p r o p o s e d
p a r t i c u l a r l y s e v e r e l y o n the h o u s e w i f e . prices.
of the l ^ p r i s e i n the r e t a i l
which was
standing i n the c o u n t r y ;
f a r m i n c o m e s last y e a r was
taken together
Moreover,
While therefore
per
up
damaging with
other
fall
the r e d u c t i o n i n
f o r w h i c h the o n l y f i n a l c u r e w a s
the G o v e r n m e n t
c o u l d n o t be
set a s i d e .
many farmers
a
had had
c o u l d not a l l o w a n
i n c r e a s e i n t h e R P I t o be a d e t e r m i n a n t o f p o l i c y , t h a t a f u l l 7j
other
p a r t l y due to a n e x c e p t i o n a l f a l l i n potato
A p a r t f r o m the p i g s e c t o r ,
of the p r e s e n t p r o p o s a l s
already
devaluation would
change i n the way i n w h i c h M C A s w e r e c a l c u l a t e d , a good y e a r .
these
devaluation
T h e rate of i n f l a t i o n h a d gone
cent i n a y e a r ,
the effects
cent
food
that
a n d of the V a l u e A d d e d T a x a n d
f l o w i n g f r o m the B u d g e t .
to t h e G o v e r n m e n t s
strongly
c e n t d e v a l u a t i o n w o u l d a d d 2 p e r c e n t to the
come
tp
create
s t a n d the
Against this,
p r i c e i n d e x a n d 0 . 5 p e r c e n t to the R e t a i l P r i c e I n d e x ( R P I ) ; increases
in Scotland
p o l i c y of g i v i n g e n c o u r a g e m e n t
c o m p e t i t i v e s e c t o r s of the e c o n o m y .
a r g u e d t h a t a 7j
affected
S t i m u l u s to a g r i c u l t u r a l
c o n s i s t e n t w i t h the G o v e r n m e n t ' s
confidence
severely
p a r t i c u l a r l y i m p o r t a n t to m a i n t a i n
farm incomes in Northern Ireland. was
of
we
w o u l d w i s h to s e c u r e a d e v a l u a t i o n of the G r e e n P o u n d d u r i n g n e x t Coiancil,
to
t o the b a l a n c e
the i n f l a t i o n a r y It w a s
cent devaluation now would l e a v e little
also scope
effects
suggested for
4
CONFIDENTIAL
67
CONFIDENTIAL
further G r e e n Pound devaluations for rising costs, keep
in later
to c o m p e n s a t e
e s p e c i a l l y i f the p o u n d r e m a i n e d
some leeway i n hana for next y e a r ,
satisfy our own f a r m e r s
PRIME MINISTER,
l e s t we
i n r e l a t i o n to the n e e d s
l\
F i s h e r i e s and F o o d was
additional 5 p e r cent devaluation for
2.
per
cent
of f a r m e r s We
a G r e e n P o u n d d e v a l u a t i o n of not m o r e than 5 per
The Cabinet
to m a i n t a i n
o n the one
should therefore cent.
guided
5
CONFIDENTIAL
go
for
a l s o a u t h o r i s e d to m a k e a b i d f o r pigmeat.
with approval,
accordingly.
hand
T h e M i n i s t e r of
of the P r i m e
Minister's
s u m m i n g u p of t h i s p a r t o f t h e i r d i s c u s s i o n a n d i n v i t e d the M i n i s t e r o f A g r i c u l t u r e ,
said
devaluation
T o o k note,
should
s u m m i n g u p t h i s p a r t o f the d i s c u s s i o n ,
a n d i t s e f f e c t o n the h o u s e w i f e o n the o t h e r . Agriculture,
We
surplus.
that the C a b i n e t w e r e a g r e e d that a n i m m e d i a t e w o u l d be e x c e s s i v e
etrcng.
farmers
f o u n d t h a t the n e e d to
then would conflict with our d e s i r e
a freeze on C A P p r i c e s for products i n THE
years
F i s h e r i e s a n d F o o d t o be
an
CONFIDENTIAL
5.
The Cabinet had before them a
m e m o r a n d u m b y the C h a n c e l l o r
of the D u c h y o f L a n c a s t e r ( C ( 7 9 ) 16) m a k i n g r e c o m m e n d a t i o n s a b o u t t h e proposals for S e l e c t C o m m i t t e e s , Select C o m m i t t e e on P r o c e d u r e
set out i n the F i r s t R e p o r t f r o m the
(th& P r o c e d u r e
Committee) for
a n d o n the h a n d l i n g o f t h e d e b a t e w h i c h w a s
1977.78,
Session
to t a k e p l a c e i n the
House of C o m m o n s on M o n d a y 2 5 J u n e . THE CHANCELLOR OF T H E DUCHY
O F L A N C A S T E R s a i d that there
had b e e n a l o n g - s t a n d i n g d e m a n d f o r m o r e e f f e c t i v e s c r u t i n y of G o v e r n m e n t .
Parliamentary
U n d e r t a k i n g s h a d b e e n g i v e n i n the
Manifesto
a n d i n T h e Q u e e n ' s S p e e c h to p r o v i d e a n o p p o r t u n i t y f o r t h e H o u s e C o m m o n s to c o m e t o a d e c i s i o n o n t h e P r o c e d u r e proposals.
T h e r e was
s u p p o r t f o r t h e m i n the H o u s e ,
and
a Motion c a l l i n g for an e a r l y substantive debate had a t t r a c t e d o v e r
260
signatures.
widespread
of
Committee's
It d i d n o t f o l l o w t h a t a l l t h o s e M e m b e r s
the M o t i o n would, s u p p o r t t h e p r o p o s a l s majority would do so.
themselves,
who had but the
H e b e l i e v e d that the p r o p o s a l s
of S e l e c t C o m m i t t e e s w e r e r i g h t i n p r i n c i p l e :
signed
great
o n the
structure
t h e y w o u l d f o r the
first
t i m e b r i n g the w h o l e a r e a o f G o v e r n m e n t a c t i v i t y w i t h i n t h e s c o p e large extent,
of
they were evolutionary i n c h a r a c t e r and w e r e ,
Select C o m m i t t e e s ;
to a
a r a t i o n a l i s a t i o n of the e x i s t i n g s t r u c t u r e w h i c h h a d g r o w n
up p i e c e m e a l o v e r a n u m b e r
of y e a r s .
The proposals
that S e l e c t
C o m m i t t e e s s h o u l d have p o w e r s to o r d e r the a t t e n d a n c e of M i n i s t e r s a n d the p r o d u c t i o n o f p a p e r s ,
a n d to f o r c e
House i n the e v e n t o f a r e f u s a l , therefore
a d e b a t e o n the F l o o r of the
w e r e not a c c e p t a b l e ,
however.
12 d e p a r t m e n t a l l y - r e l a t e d S e l e c t C o m m i t t e e s b u t w i t h a c l o s e r t i o n o n the n u m b e r seven);
of i n v e s t i g a t i v e
and that t h e r e
sub-committees
Ministers,
a n d to s e n d f o r p a p e r s
restricr
(four i n s t e a d of
s h o u l d be no c h a n g e i n t h e i r p o w e r s .
Select
C o m m i t t e e s w o u l d c o n t i n u e t o b e a b l e to i n v i t e t h e a t t e n d a n c e
of
w h i c h w o u l d be p r o v i d e d s u b j e c t
a c c e p t e d r e s t r i c t i o n s o n s u c h m a t t e r s a s n a t i o n a l s e c u r i t y , the affairs
He
r e c o m m e n d e d t h a t the G o v e r n m e n t s h o u l d a g r e e a s t r u c t u r e of
to
private
of i n d i v i d u a l s , n e g o t i a t i o n s a n d s p e c i f i c c a s e s w h e r e the M i n i s t e r
might have an appellate
or
judicial function.
Committee had themselves proposed a series
The
Procedure
of M o t i o n s for
c o v e r i n g the s t r u c t u r e a n d p o w e r s o f S e l e c t C o m m i t t e e s . preferable,
however,
f o r the G o v e r n m e n t t o t a b l e t h e i r o w n
giving effect to t h e i r c o n c l u s i o n s . Committee's proposals
A n y departure
would meet some
the G o v e r n m e n t r e s p o n d e d f a v o u r a b l y tally-related Select C o m m i t t e e s , resisting unacceptable
In d i s c u s s i o n t h e r e w a s
Procedure
o p p o s i t i o n i n the H o u s e ,
to the p r o p o s a l s f o r
be
Motions
f r o m the
but i f
departmen
t h e r e w o u l d be a g o o d c h a n c e o f
amendments on powers.
general
s u p p o r t f o r the v i e w that the
m e n t s h o u l d a c c e p t the p r i n c i p l e o f d e p a r t m e n t a l l y - r e l a t e d Committees,
debate
It w o u l d
Govern
Select
a l t h o u g h the e x t r a w o r k w h i c h t h e y w o u l d i n v o l v e
M i n i s t e r s a n d s e n i o r o f f i c i a l s w o u l d be c o n s i d e r a b l e e m p h a s i s e d i n the d e b a t e .
There were arguments 6
CONFIDENTIAL
for
a n d s h o u l d be
for grouping
some
CONFIDENTIAL
Departments
together.
O n the o t h e r h a n d ,
t h e r e w o u l d be a
clearer
cut r e l a t i o n s h i p b e t w e e n C o m m i t t e e s and
Ministers if Committees
with a single M i n i s t e r and D e p a r t m e n t .
Moreover,
p o s i t i o n i n the d e b a t e w o u l d b e of 12 C o m m i t t e e s .
stronger
The Procedure
to g r o u p t h e D e p a r t m e n t s
the
dealt
Governments
i f i t a c c e p t e d the f u l l
Committee themselves
proposal
had
proposed
of I n d u s t r y a n d E m p l o y m e n t t o g e t h e r ;
this
the w r o n g c o m b i n a t i o n a n d i t w o u l d b e b e t t e r t o l i n k I n d u s t r y a n d
was
Trade
under one S e l e c t C o m m i t t e e ,
and to have a s e p a r a t e S e l e c t
for E m p l o y m e n t .
for Select C o m m i t t e e s for Scotland and
Proposals
Committee
W a l e s s h o u l d n o t be i n c l u d e d i n t h e M o t i o n s f o r d e b a t e o n t h e Committee's
report,
b u t s h o u l d be p u r s u e d
separately
as
Procedure
appropriate.
S p e c i a l c o n s i d e r a t i o n s a p p l i e d t o the L o r d C h a n c e l l o r ' s D e p a r t m e n t the L a w
Officers'
Department.
constitutional independence by S e l e c t C o m m i t t e e s
It w a s
e s s e n t i a l to p r e s e r v e
o f the j u d i c i a r y a n d to p r o t e c t f r o m
such matters as judicial appointments,
cases.
of the L a w
Officers'
c o m p l e t e l y f r o m the O r d e r s Home Affairs.
Members
of R e f e r e n c e
Committee;
a p p o i n t e d f o r the
THE
departmentally-related
been
but w i t h a s i n g l e
and the L a w
C o m m i t t e e o n the P a r l i a m e n t a r y should be r e t a i n e d .
The
Committee
of I n d u s t r y a n d the D e p a r t m e n t of T r a d e the D e p a r t m e n t
of E m p l o y m e n t .
of the C o m m i t t e e o n H o m e A f f a i r s
Chancellor's Department
s a i d that the
C o m m i t t e e ' s p r o p o s a l f o r 12
Select Committees,
separate C o m m i t t e e for
Officers'
Department.
C o m m i s s i o n e r for
and a
The Orders
s h o u l d e x c l u d e the
The
Select
investigative
s h o u l d be r e s t r i c t e d a s p r o p o s e d b y the C h a n c e l l o r There
o f M i n i s t e r s a n d the
a n d a n y a t t e m p t to g i v e t h e S e l e c t C o m m i t t e e s
p o w e r s s h o u l d be r e s i s t e d .
T h e C h a n c e l l o r o f the D u c h y of
s h o u l d a r r a n g e f o r a M o t i o n to be t a b l e d i n the l i g h t o f t h e s e The Cabinet Took note,
of
s h o u l d be n o c h a n g e i n S e l e c t
p o w e r s r e l a t i n g to t h e a t t e n d a n c e
p r o d u c t i o n of p a p e r s ,
of
Lord
Administration
C o m m i t t e e s ' p o w e r s to a p p o i n t
the D u c h y o f L a n c a s t e r . 1
a s r e c o m m e n d e d b y the
s u m m i n g u p the d i s c u s s i o n ,
c o v e r i n g the D e p a r t m e n t
Committees
on
Parliament.
PRIME MINISTER,
sub-committees
excluded
s h o u l d be n o m i n a t e d o n
the C o m m i t t e e of S e l e c t i o n h a d n o w
Cabinet a c c e p t e d the P r o c e d u r e
Reference
criminal
t o be
of the S e l e c t C o m m i t t e e
of S e l e c t C o m m i t t e e s
a M o t i o n t a b l e d b y the C o m m i t t e e of S e l e c t i o n , Procedure
Lord
and the
d i s c r e t i o n i n the p r o s e c u t i o n of
It w o u l d be p r e f e r a b l e f o r t h e t w o D e p a r t m e n t s
scrutiny
the
C h a n c e l l o r ' s c o n f i d e n t i a l c o m n n t n i c a t i o n s w i t h the j u d i c i a r y , exercise
and
the
new
Lancaster conclusions.
-
with approval,
of the P r i m e
Ministers
s u m m i n g u p of t h e i r d i s c u s s i o n a n d i n v i t e d the
C h a n c e l l o r o f the D u c h y of L a n c a s t e r to a c c o r d i n g l y .
proceed
1
i!
7 CONFIDENTIAL
70
CONFIDENTIAL
6.
T h e C a b i n e t h a d b e f o r e t h e m m e m o r a n d a ( C ( 7 9 ) 17 a n d
18)
b y the S e c r e t a r y o f S t a t e f o r t h e H o m e D e p a r t m e n t a b o u t t h e Legislative P r o g r a m m e THE HOME
1979-80.
SECRETARY
s a i d that T h e Q u e e n ' s
Speeches and Future
L e g i s l a t i o n C o m m i t t e e h a d a i m e d to c o n s t r u c t a p r o g r a m m e the G o v e r n m e n t s m a i n p o l i t i c a l o b j e c t i v e s w i t h o u t Parliament.
The suggested p r o g r a m m e
c o n t a i n e d 43 m a i n B i l l s a n d
a t o t a l o f n e a r l y 70 B i l l s w h e n C o n t i n g e n t , Reading Committee B i l l s were added. had been p r o m i s e d in The Queen's
meeting
over-burdening
Scottish and Second
It i n c l u d e d a l l the B i l l s t h a t
Speech.
able n u m b e r of highly c o n t r o v e r s i a l B i l l s .
T h e r e were a consider? The Government could
e x p e c t e v e r y f o r m o f d e l a y i n g t a c t i c o n the p a r t of the O p p o s i t i o n , a n d i t m i g h t be n e c e s s a r y to u s e the g u i l l o t i n e m o r e F r o m that p o i n t of v i e w ,
previous Session.
the
than i n any
programme
r e p r e s e n t e d a h e a v y l o a d a n d i t m i g h t be n e c e s s a r y to c o n s i d e r d r o p p i n g s o m e B i l l s a s the S e s s i o n In d i s c u s s i o n , t h e r e w a s
proceeded.
g e n e r a l a g r e e m e n t that no m o r e B i l l s
b e a d d e d to t h e P r o g r a m m e .
C o n c e r n was
e x p r e s s e d a b o u t the
n u m b e r o f B i l l s w h i c h w o u l d r e q u i r e to b e g u i l l o t i n e d i n the for w h i c h no c o m p a r a b l e p r o c e d u r e w a s
should
available
Commons,
i n the L o r d s .
a c h i e v e R o y a l A s s e n t b y the e n d of J u l y c o n t r o v e r s i a l B i l l s
To
would
h a v e to r e a c h the H o u s e o f L o r d s no l a t e r t h a n the e n d o f M a y . p o s s i b i l i t y of m e r g i n g the
The
Industrial Relations and E m p l o y m e n t
P r o t e c t i o n A c t s ( A m e n d m e n t ) B i l l s w o u l d be e x p l o r e d . Installations B i l l c o u l d be d r o p p e d .
The
Offshore
L e g i s l a t i o n on the D i s p o s a l of
P u b l i c A s s e t s w o u l d r e q u i r e e a r l y i n t r o d u c t i o n t o e n a b l e s a l e s to b e m a d e i n the c u r r e n t f i n a n c i a l y e a r .
Proposals
were made for
s u b s t i t u t i o n of the l o n g C o m p a n i e s N o , 2 B i l l b y t h r e e Bills,
short
s o m e o f w h i c h c o u l d be i n t r o d u c e d i n the H o u s e o f
T H E PRIME MINISTER,
s u m m i n g u p the d i s c u s s i o n ,
the
Trade
Lords.
s a i d t h a t the
C a b i n e t w e r e a g r e e d that the s i z e of the L e g i s l a t i v e P r o g r a m m e the c o m i n g S e s s i o n m u s t n o t b e i n c r e a s e d .
the H o m e S e c r e t a r y m i g h t c o n s i d e r w i t h t h e S e c r e t a r y o f S t a t e Trade whether
for
S u b j e c t to that c o n d i t i o n ,
a n y v a r i a t i o n i n the T r a d e B i l l s c o u l d be
for
authorised.
T h e T e l e c o m m u n i c a t i o n s A u t h o r i t y B i l l s h o u l d be d e f e r r e d u n t i l the next S e s s i o n .
It w a s
e s s e n t i a l that p o l i c y c l e a r a n c e should
o b t a i n e d a n d the d r a f t i n g of B i l l s i n the p r o g r a m m e possible,
begin as
be soon
as
w i t h a v i e w to i n t r o d u c i n g B i l l s f o r e a r l y S e c o n d R e a d i n g
when P a r l i a m e n t r e a s s e m b l e d The Cabinet T o o k note,
i n the a u t u m n .
-
with approval,
o f the P r i m e
s u m m i n g up of their d i s c u s s i o n .
8
CONFIDENTIAL
Minister's
CONFIDENTIAL
7.
THE
L O R D P R E S I D E N T O F T H E C O U N C I L r e c a l l e d that the
C a b i n e t h a d a g r e e d o n 17 M a y t h a t e c o n o m i e s o f a t l e t ^ s t 3 p e r
cent
should be s e c u r e d i n the p r e s e n t f i n a n c i a l y e a r on wage r e l a t e d i t e m s in central Government expenditure, i t i m p o s s i b l e to a c h i e v e t h i s i t was
a n d that, i f any M i n i s t e r found o p e n to h i m to
alternative ways of s e c u r i n g equivalent s a v i n g s .
suggest In the l i g h t of
t h i s d e c i s i o n the G o v e r n m e n t h a d p u b l i c l y c o m m i t t e d i t s e l f to a r e d u c t i o n of 3 p e r cent i n the C a s h L i m i t s for i n the C i v i l S e r v i c e . limits i n detail. service,
staff-related
costs
T h e t i m e h a d n o w c o m e to p u b l i s h t h e s e
Exemptions already agreed,
eg.
for the p r i s o n
w o u l d r e d u c e the o v e r a l l a v e r a g e s a v i n g to 2 . 8 p e r
cent.
T h e Department of Health and S o c i a l S e c u r i t y had suggested
that
i n s t e a d o f r e d u c i n g s t a f f i n i t s l o c a l o f f i c e s i t s h o u l d r e d e p l o y t h e m to fraud p r e v e n t i o n duties w h i c h i t was thought would y i e l d substantially b i g g e r s a v i n g s t h a n the staff c o s t s i n v o l v e d . E m p l o y m e n t w o u l d w i s h to f o l l o w and S o c i a l S e c u r i t y was
The Department
of
suit i f the D e p a r t m e n t of H e a l t h
a l l o w e d to f o l l o w t h i s c o u r s e a n d o t h e r
Departments
eg.
Inland Revenue and C u s t o m s and E x c i s e might
a b l e to m a k e
similar claims.
and S o c i a l S e c u r i t y and E m p l o y m e n t to p r o c e e d i n t h i s way b r i n g t h e t o t a l s a v i n g o n staff c o s t s d o w n to 2. 4 p e r
cent,
would very
to t h e p r e v i o u s G o v e r n m e n t s t a r g e t o f ' a t l e a s t 2 p e r c e n t . Government would look v e r y foolish if,
THE SECRETARY
close The
1
reduction i n staff c o s t s ,
be
T o a l l o w the D e p a r t m e n t s of H e a l t h
having p r o m i s e d a 3 per
i t f e l l s e r i o u s l y short of this
cent
target.
O F S T A T E F O R S O C I A L S E R V I C E S s a i d that,
he h a d p r e v i o u s l y i n d i c a t e d to t h e C a b i n e t ,
he could secure m o r e
as than
e q u i v a l e n t s a v i n g s i f h e w e r e a l l o w e d to i n c r e a s e t h e staff e n g a g e d i n the p r e v e n t i o n of f r a u d .
T h i s w o u l d b o t h h e l p to h o n o u r a
commitment and would y i e l d even l a r g e r
Manifesto
savings i n subsequent
In a d d i t i o n , t h e r e w o u l d b e g r e a t d i f f i c u l t y i n a p p l y i n g a 3 p e r cut to t h e staff of l o c a l o f f i c e s w i t h o u t d a n g e r of b e n e f i t s .
The Governments
objective
net s a v i n g s i n p u b l i c e x p e n d i t u r e , manpower
for their own
In d i s c u s s i o n , i t w a s work was,
years. cent
to t h e p u n c t u a l p a y m e n t
s h o u l d be to s e c u r e
r a t h e r t h a n to p u r s u e
large
economies in
sake.
a r g u e d that, i m p o r t a n t though f r a u d p r e v e n t i o n
to a l l o w a f u l l o f f s e t i n the D e p a r t m e n t o f H e a l t h a n d
S o c i a l S e c u r i t y w o u l d i n e v i t a b l y l e a d staffs i n o t h e r D e p a r t m e n t s seek c o m p a r a b l e t r e a t m e n t .
Some
take i n d u s t r i a l a c t i o n to s e c u r e t h i s .
Moreover
the w o r k of the
engaged i n f r a u d p r e v e n t i o n i n the D e p a r t m e n t of E m p l o y m e n t c l o s e l y l i n k e d to t h a t o f t h e i r c o u n t e r p a r t s i n the D e p a r t m e n t Health and S o c i a l S e c u r i t y and i t was distinctions between t h e m . G o v e r n m e n t was
but to l a r g e r e d u c t i o n s i n t h e s i z e of t h e C i v i l S e r v i c e .
expenditure, Its c r e d i b i l i t y
would be put at r i s k i f i t f e l l s e r i o u s l y s h o r t o f t h e a n n o u n c e d
9
of
a r g u e d that the
c o m m i t t e d , not o n l y to s a v i n g s i n p u b l i c
CONFIDENTIAL
staff
wa3
d i f f i c u l t to d r a w m e a n i n g f u l
A g a i n s t t h i s , i t was
3 p e r cent cut.
to
staffs m i g h t e v e n be t e m p t e d to
CONFIDENTIAL
THE
P R I M E MINISTER,
s u m m i n g up the d i s c u s s i o n ,
said that the
C a b i n e t a g r e e d t h a t i t was i m p o r t a n t to c o m e a s c l o s e a s to t h e 3 p e r 1979-80.
cent target i o r reductions i n staff-related
T h e L o r d P r e s i d e n t of the C o u n c i l ,
the S e c r e t a r i e s
of State for S o c i a l S e r v i c e s
and with the C h i e f S e c r e t a r y ,
Treasury,
possible
costs i n
i n consultation with
and for
Employment,
should therefore
agree
and
publish c a s h l i m i t s for the D e p a r t m e n t of H e a l t h and S o c i a l S e c u r i t y and for the D e p a r t m e n t of E m p l o y m e n t w h i c h would c o m e as as p o s s i b l e to t h e r e q u i r e d t a r g e t .
no w e a k e n i n g i n t h e i r r e s o l v e t o a c t v i g o r o u s l y a g a i n s t f r a u d . remained a major
c o m m i t m e n t to be p u r s u e d a s r e s o u r c e s
The Cabinet T o o k note,
with approval,
of the s u m m i n g up of
their d i s c u s s i o n by the P r i m e
Minister,
i n v i t e d the M i n i s t e r s c o n c e r n e d to be accordingly.
10
CONFIDENTIAL
close
The Cabinet's decision implied
and
guided
This
permitted.
CONFIDENTIAL
THE FOREIGN AND
8 -
COMMONWEALTH SECRETARY
s a i d that
'
b e f o r e the G e n e r a l E l e c t i o n t h e S h a d o w C a b i n e t h a d d e c i d e d n o t to s u p p o r t a f u r t h e r r e v i e w a n d h a d i n f o r m e d the L a b o u r G o v e r n m e n t o f t h i s . view that d e c i s i o n s h o u l d n o w be confirmed a s t h e r e w a s gained by a further
In h i s
n o t h i n g u s e f u l to b e
P a r l i a m e n t a r y i n q u i r y a n d a g o o d d e a l to be
lost.
Some A f r i c a n G o v e r n m e n t s w o u l d be c r i t i c a l a n d i t w o u l d be b e t t e r defer any a n n o u n c e m e n t u n t i l L o r d H a r l e c h , representative THE
in Africa,
PRIME MINISTER,
had left
s a i d the
t h e r e t o be n o f u r t h e r i n q u i r y .
D i r e c t o r of P u b l i c P r o s e c u t i o n s
had,
any prosecutions
t i o n of t h e B i n g h a m R e p o r t .
to
special
Nigeria.
s u m m i n g up a s h o r t d i s c u s s i o n ,
Cabinet would c l e a r l y prefer decisions on whether
the G o v e r n m e n t s
however,
The
s t i l l to r e a c h h i s
should follow f r o m his
examina
A n e a r l y a n n o u n c e m e n t o f a d e c i s i o n not to
hold a further i n q u i r y might therefore
be c r i t i c i s e d a s
showing
undue
f a v o u r i t i s m to f e l l o w p o l i t i c i a n s , a l b e i t o f a d i f f e r e n t p o l i t i c a l P a r t y , when r e l a t i v e l y m i n o r f i g u r e s Moreover,
i n the o i l c o m p a n i e s w e r e s t i l l at r i s k .
the i m p a c t of a n a n n o u n c e m e n t o n A f r i c a n o p i n i o n
i m p o r t a n t and c o u l d affect the t i m i n g of any a n n o u n c e m e n t . factor c o u l d be b e t t e r j u d g e d w h e n L o r d H a r l e c h h a d r e t u r n e d Lagos and reported.
The Cabinet preferred
decisions until L o r d Harlech's any questions been
r e p o r t was
therefore
to h a n d .
from
to d e f e r
In t h e
final
meantime
s h o u l d be a n s w e r e d by s a y i n g that no d e c i s i o n h a d y e t
made. The Cabinet Took note,
with approval,
of the P r i m e
s u m m i n g u p of t h e i r d i s c u s s i o n .
Cabinet
was This
Office
14 J u n e 1979
11
CONFIDENTIAL
Ministers
